California doubles PG&E fine for wrong data

CassandraSweet

California regulators doubled a fine against PG&E Corp.'s utility, Pacific Gas & Electric, to $14.4 million for submitting wrong data about an aging San Francisco-area natural gas pipeline and not correcting the error for more than a year.

The 1950s-vintage pipeline runs through San Carlos, Calif., a community south of San Francisco. As part of a safety overhaul, the utility had told the California Public Utilities Commission the pipe used to transport natural gas was made using a seamless welding technique, called a "double submerged arc weld." That method was supposed to allow the line to move gas safely at higher pressures. The commission approved PG&E's plan to boost gas volumes through the pipeline based on the information.

PG&E informed the commission 18 months later that its initial report was wrong. Instead of the seamless technique, the pipe actually had a "single submerged arc weld," making the pipeline weaker and necessitating the transport of natural gas at a lower pressure.

In October, the CPUC initially proposed a $6.8 million fine against PG&E, but, when the commission met on Thursday, the final vote was to more than double that amount.

"This penalty is designed to serve as a deterrent to similar behavior in the future," CPUC Commissioner Mark Ferron said. "There should be no question that the CPUC expects nothing less than forthright and timely disclosure in all matters of public safety."

The agency is cracking down on misinformation of this type because the natural gas pipeline is similar to one PG&E operated in San Bruno that exploded in 2010, killing eight people and injuring 58 others.

PG&E, in a press release, called the fine excessive, but acknowledged its communication efforts fell short of expectations.

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